The Swiss National Council adopted two motions of the Social Democratic Party (SP) yesterday intended to ban bonuses for top executives of systemically important banks and demand a higher equity ratio for large global banks.
The political debate surrounding the emergency bailout of Credit Suisse by UBS is far from over. Now the National Council has instructed the Federal Council with two motions to develop a legal basis for the bonuses at systemically important banks and for the equity capital of globally active major banks, as reported by the parliamentary news agency «SDA» (in German).
The proposals were submitted by SP National Councilor Prisca Birrer-Heimo and demanded that «no bonus payments may be made to the supreme body and persons responsible for the management.» The motion was approved by the National Council on Tuesday by 101 votes to 70 with 22 abstentions and now goes to the Council of States, whose approval is also required.
Second Motion Approved
The second motion calling for an unweighted capital ratio of at least 15 percent for systemically important and globally active banks passed with a majority of 92 to 82 with 18 abstentions. It too is subject to approval by the Council of States.
The Federal Council had spoken out against both motions, with Finance Minister Karin Keller-Sutter stressing that the Federal Council will examine a legal restriction on variable salary components.
A proposal by Birrer-Heimo for tougher instruments for financial market supervision was adopted without opposition. The government is required to examine additional, more effective supervisory instruments for the Financial Market Authority (Finma), including fines and sanctions against errant financial institutions.
